BlackBerry Rallies After Confirming Resolution Of Facebook Dispute

BlackBerry Rallies After Confirming Resolution Of Facebook Dispute

Shares of BlackBerry Ltd BB were trading higher Friday after the Canadian company confirmed that it settled a legal spat with Facebook, Inc. FB.

What Happened: BlackBerry confirmed in a statement to Bloomberg it settled a dispute with the social media giant related to patent royalties. The company didn't confirm any specific details of the agreement.

Related Link: 35 Stocks Moving In Friday's Mid-Day Session

The legal dispute dates back to 2018, when BlackBerry sued Facebook. BlackBerry said Facebook was using its inventions within its messaging applications.

Facebook responded with a lawsuit of its own, saying that BlackBerry infringed on its voice messaging technology.

Why It's Important: Details of the agreement aren't known, but investors appear to be speculating that decision is in BlackBerry's favor given the strong gains.

In fact, Friday's move to a new 52-week high of $11.56 builds on Thursday's more than 30% gain.

This week, the company sold 90 patents to China's Huawei that focus on geo tagging of images, security features, and presentation of text and images.

BB Price Action: BlackBerry shares were up 12.9% at $10.28 at last check Friday. 

Photo courtesy of BlackBerry. 

Posted In: BloombergPatentsNewsLegalMoversMediaTrading Ideas